The Bank Wants Your Home — Bankruptcy Says No

You worked hard for your home. Now the bank wants to take it back.
But here’s the truth: You don’t have to give up your keys — or your future.

Thanks to New York’s powerful 2025 homestead exemption, you can keep your home in bankruptcy and slam the brakes on foreclosure. Whether you’re behind on payments or drowning in credit card debt, bankruptcy is your legal power move to take back control.

🛡️ The 2025 Homestead Exemption: Your Secret Weapon

In New York, the homestead exemption protects a portion of your home equity from creditors during bankruptcy. That means if your equity is under the exemption amount, the trustee can’t touch it — and you get to stay in your home.

Here’s what you’re entitled to in 2025:

  • $204,825 in NYC (Bronx, Brooklyn, Manhattan, Queens, Staten Island) + Nassau, Suffolk, Westchester, Rockland & Putnam

  • $170,700 in Albany, Dutchess, Columbia, Orange, Saratoga & Ulster

  • $102,400 in all other NY counties

🧮 How to Know If You’re Protected

  1. Look up your home’s fair market value

  2. Subtract your mortgage balance(s)

  3. Compare the result (your equity) to your local exemption

If your equity is below the limit, congratulations — you can likely keep your home in bankruptcy, even in Chapter 7.

⚖️ Chapter 7: Quick Relief Without Losing the Roof Over Your Head

In Chapter 7, the bankruptcy trustee can only liquidate assets that aren’t exempt. So if your homestead exemption covers all your equity, and you’re current on your mortgage, there’s no sale — and no problem.

But what if you’re behind? Chapter 7 won’t stop a long-term foreclosure. You’ll need to step up to Chapter 13.

🔁 Chapter 13: Hit Pause on Foreclosure and Catch Up

If you’re months behind and the lender is circling like a shark, Chapter 13 bankruptcy can stop foreclosure in its tracks.

Here’s how it keeps you in your home:

  • You immediately stop the foreclosure sale

  • You repay missed mortgage payments over 3 to 5 years

  • You keep paying your regular mortgage while the arrears are built into your plan

No more sleepless nights. No more panic at the mailbox. Chapter 13 buys you time — and dignity.

🔍 Got a Second Mortgage? There’s More Good News

If your home’s value has dropped, and your second mortgage is completely underwater, Chapter 13 may let you strip it off — converting it into unsecured debt that could be wiped out.

That’s not just a lifeline — that’s a win.

🚩 Don’t Make These Mistakes

  • Don’t sign over your home to a family member — the court will see it as a fraudulent transfer

  • Don’t wait until the day before foreclosure — earlier filing gives you more legal options

  • Don’t assume all bankruptcy is the same — your strategy matters

You’re not just filing paperwork. You’re fighting for your future — and that fight requires a plan.

🧠 The Takeaway: File Smart, Stay Home

The banks and lenders don’t want you to know this:
Bankruptcy is the one legal move that can save your home, cancel your debt, and give you a fresh start.

The 2025 New York homestead exemption exists to protect families like yours. Don’t let misinformation — or fear — rob you of what you’ve earned.

📞 Get help now!

If you’re considering bankruptcy or simply want to understand your options, we’re here for you. Call or text us at 212-244-2882, email us at info@midtownbankruptcy.com, or visit www.midtownbankruptcy.com to get started. At The Law Office of William Waldner, P.C., we’ve helped countless New Yorkers take control of their financial future — and we’re ready to help you, too.

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